Ambassadors from 27 European countries authorize preliminary text after 26 years of negotiations between economic blocs
The (Federation of Industries of the State of São Paulo) supported the preliminary approval of the Mercosur-European Union trade agreement. “The text is not perfect, but it was the possible agreement to reconcile the interests of 31 countries, in a scenario of transformation of international trade”reads the statement.
The federation highlighted that it participated “actively” over the 26 years of negotiations. The trade pact was approved this Friday (January 9, 2026). It still needs to be signed and ratified by Congress and the European Parliament.
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Fiesp stated that “enthusiastically received the authorization to sign the Trade Agreement between Mercosur and the European Union”.
For the federation, the document will bring significant changes to commercial relations. “The agreement is comprehensive and will substantially change the way in which Mercosur and European Union companies do business, import, export and invest with each other”says the statement.
France, Ireland, Poland, Austria and Hungary voted against the text, while Belgium chose to abstain. With preliminary approval, the president of the European Commission, Ursula von der Leyen, will be able to sign the agreement with Mercosur countries next week.
Here is the full note:
“Fiesp enthusiastically received the authorization to sign the Trade Agreement between Mercosur and the European Union. The entity actively participated in the negotiations in recent decades, with the main objective that the understanding would bring real value to people and Brazilian industry. The text is not perfect, but it was the possible agreement to reconcile the interests of 31 countries, in a scenario of transformation of international trade.
“The agreement is comprehensive, and will substantially change the way in which companies from Mercosur and the EU do business, import, export and invest with each other. ‘For Fiesp, the real work begins now. It will be up to all of us to innovate, improve productivity and incessantly seek excellence from the door to the factories, where we are already standing up to European competitors. And we will work to ensure competitive equality that allows national entrepreneurs to prosper and make the most of the opportunities that the agreement offers’, he says Paulo Skaf, president of Fiesp.
“Despite the moment of initial celebration, it is important to highlight that the agreement still needs to be signed and ratified by the Brazilian Congress and the European Parliament, so that the economic and commercial pillars come into force as quickly as possible and have a positive impact on the Brazilian economy.”
Mercosur-EU Agreement
The Council of the European Union this Friday (9.Jan.2026) with Mercosur after 26 years of negotiations. The text still needs to be signed and ratified by Congress and the European Parliament. Read the statement from the European bloc (PDF – 486 kB).
France, Poland, Austria, Ireland and Hungary expressed opposition. Belgium abstained. The capitals of the European Union had until 5pm (Brussels time, 1pm in Brasília) this Friday to present any objections.
The text now goes to . If there is approval, , president of the European Commission, should travel to Paraguay to sign the document with the South American bloc on Monday (12 January).
Paraguay, which was with Brazil until December 20, 2025.
EU & MERCOSUR
The European Union is Mercosur’s 2nd largest trading partner in goods. The agreement would create a common market with more than 700 million people and a combined GDP of US$22 trillion.
Brazil exported US$49.8 billion to the European Union in 2025, an increase of 3.2% compared to 2024. Imports totaled US$50.3 billion last year, with growth of 6.4% in 1 year.
The trade flow – the sum of exports and imports – exceeded US$ 100 billion for the first time in the historical series, which began in 1997. The volume rose 4.8% compared to the same period last year.
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